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Real estate market in Ukraine, bottom prices, what’s next?

World financial crisis first of all hit the market of real estate. And Ukraine wasn’t exception. During 2006 and 2007 prices were rising and you could sell almost any house or an apartment with no problem. Sometimes sellers were afraid to sell because they knew that in couple of months they could get more money for this house or apartment. But all this remained in past.

Such constant growth was only because of affordable loans. And it seemed like everyone could get one. Even a cleanup man could get a loan and most banks didn’t care if the person is able to return the money back. When the crisis started people could no longer keep up with bank payments. So banks started rising interest rate which led to more dramatic debts. And a lot of people consider selling their house or apartment is the only way out of this situation. So big number of cheap apartments and houses flowed to unstable market. Most apartments and houses have lost 45-50% of its value. But even this can not help the situation. People still can not afford it. Only government intervention can improve the situation. But unstable political situation slows the process.

I must say for those who are planning of buying real estate it’s the most appropriate time. The one who owns land is ready to make 50-60% off the price just in order to sell it. Most specialists say that most likely this is a bottom price for land.

But most of the people want to know what to expect from prices till the end of the year. I am not sure that some one could give straight answer. I can say for sure there are no conditions for price rising. Thought dollar exchange rate could be the main reason for this. Most specialists agree that prices and amount of sold real estate will remain the same. This year banks will not be able to finance real estate market, because they have a lot of unreturned loans. So banks are more concerned about returning their money rather than investing into new projects.